Re:California population declines for first time in more tha...
by dragonwriter on Sunday May 09, 2021 @06:28AM
(#27094821)
> your real estate taxes are more or less locked at that price and won’t rise as the value increases.
That’s...not true.
For the ad valorem part of real estate taxes (classic “property tax”), the assessment will rise with value increases to a level capped by a cumulative annual increase of the lower of 2% or the actual level of inflation from the date of purchase or qualifying improvement eligible for full-market valuation. The tax rate for those taxes can also change in principal, but the other part of Prop 13 limits the ad valorem rate to 1%, so most jurisdictions are maxed out.
But California has another form of real estate taxes not subject to the limits on classic property taxes, parcel taxes (Mello-Roos fees) which are assessed at a flat dollar amount against all properties in a taxation district.
That’s...not true.
For the ad valorem part of real estate taxes (classic “property tax”), the assessment will rise with value increases to a level capped by a cumulative annual increase of the lower of 2% or the actual level of inflation from the date of purchase or qualifying improvement eligible for full-market valuation. The tax rate for those taxes can also change in principal, but the other part of Prop 13 limits the ad valorem rate to 1%, so most jurisdictions are maxed out.
But California has another form of real estate taxes not subject to the limits on classic property taxes, parcel taxes (Mello-Roos fees) which are assessed at a flat dollar amount against all properties in a taxation district.